BBC News Online: UK Politics

Brown warned over pension rise

The September inflation rate - which is used to set benefit rises - of 3.3% was higher than expected and means at least £2.20 a week extra from next April.

The figures would rise from £67.50 to £69.75 for single pensioners, while a married couple would see their pension increase by £3.60 from £107.90 to £111.50.

But Age Concern warned Mr Brown he would have to do considerably more than that if he was to stand any chance of appeasing pensioners still angered after this year's small rise.

Spokeswoman Rhian Beynon said: "I think people are still looking to be compensated for that 75p increase.

"There is still so much anger out there that people are looking for substantially more than that."

Pensioners face a wait before hearing details of exactly what they will receive.

Outcry over 75p increase

Mr Brown signalled at the Labour Party conference in Brighton that extra money would be available for pensioners, but he is not expected to give details for a few weeks.

An announcement is expected over the "transitional arrangements" aimed at all pensioners until the new pension credit comes into force in three years time.

The promise was part in response to the outcry over the 75p increase and part because he was unsuccessfully trying to fight off a motion by delegates backing the restoration of the link between pensions and earnings.

This year's increase was based on inflation figures for September 1999 which happened to be the lowest for 36 years at 1.1%.

Pensions are expected to be one of the main issues at the next election which could be held early next year.